Supplier News
China – Paradise poised for coronavirus backlash following modest growth in 2019
By Phil - 27 March 2020
Macau-based multi-player and Electronic Table Gaming specialist Paradise Entertainment reported solid results for 2019 with an increase in revenue of 1.5 per cent, year-on-year to HK$1,181.8m although profit plummeted by 80.1 per cent.
Adjusted EBITDA decreased 27.9 per cent year-on-year to HK$87m with profit coming in at HK$10.6m.Revenue of electronic gaming equipment and systems was up 82.5 per cent year-on-year to HK$177.6m with the group selling 799 LMG terminals and providing upgrading services to 1,051 LMG terminals in Macau.
The group has also moved into the development of slot machines with new slots hitting the floor in Macau and as well as in the Americas and South East Asia and Macau. Other high-tech products include the development of 5G and AI high-tech products which will soon be launched to the market.
Jay Chun, Chairman and Managing Director of Paradise, commented: “The group continued to record solid results for 2019 with 1.5 per cent increase in total reported revenue to HK$1,181.8m and recorded an Adjusted EBITDA of HK$87m in 2019. Our first ever-self developed slot machines were approved by DICJ in 2019 which marked an important milestone to diversify our business to slot machine segment ever since we developed the flagship product the LMG machines in Macau. We have also started to debut our self-developed slot machines to Americas and South East Asian markets in various casinos to emerge as one of the leading gaming companies. We are confident that the innovative slot machines will generate fresh revenue streams for the Group apart from our LMG systems. The launching of new slot machines and new library of slot titles also signify the ambition of the Group to become a leading gaming technology company in the world.
He added: “In recent years, the group has continuously increased its investment on research and development for the attainments of innovation and breakthrough in design and applications of 5G, AI and other high-tech products such as smart wear, smart home and wireless terminal products with a view to providing customers’ needs with professional solutions on high-tech products in areas of education, sports and living, etc. Global market of smart wear and smart home has been growing and is anticipated to keep flourishing at a robust pace. These high-tech products will generate fresh revenue streams for the Group in the years ahead and we believe that high-tech and gaming industry will merge more closely in future.”
The group also has several Macau casinos under its management. Total GGR generated by Casino Kam Pek Paradise decreased by 11.3 per cent to HK$1,270.2m in 2019 when compared to 2018. The decrease was mainly due to the temporary suspension of LMG terminals at the casino for upgrade of the LMG terminals pursuant to the new technical standards.
Mr. Chun added: ” Relating to the recent outbreak of a respiratory illness caused by a novel coronavirus affecting public health, the group considers such coronavirus disease will inevitably have adverse effect on the group’s operation. The group is very cautious about this global health emergency and is committed to take all possible protective measures to the well-being and safety of our patron customers as well as our staff, and at the same time, improve businesses and reduce operating costs of the Group during the tough period of time. We remain confident in the longer-term outlook for Macau in general and believe that the Greater Bay Area integration plan will further facilitate the flow of people, logistics and capital within Macau, Hong Kong and the nine cities of southern Guangdong. We will continue to support and leverage on the Greater Bay Area integration plan. The Group remains cautiously optimistic and will strive to identify new business opportunities in Macau and overseas markets and maximise returns to our shareholders.”
